The Pakistani government and the International Monetary Fund (IMF) were discussing a $2.5-billion "standby arrangement" for six to nine months as the current bailout programme is set to expire on Friday (June 30).

The Pakistani government and the International Monetary Fund (IMF) were discussing a $2.5-billion "standby arrangement" for six to nine months as the current bailout programme is set to expire on Friday (June 30). On Tuesday, Pakistan Finance Minister Ishaq Dar said the two sides were working on a "mechanism" to ensure that Islamabad got the entire amount and not just the close to $1.1 billion due under the current review, the news agency Reuters reported on Wednesday. However, Finance Minister Dar did not elaborate on what the mechanism was. The government is currently racing against time to unlock $1.1 billion under the lender's ninth review of a $6.5-billion Extended Fund Facility agreed upon in 2019. As per a report by the Express Tribune, the ninth review is in order after recent adjustments but Pakistan is keen to receive the entire undisbursed amount, which is only possible in a new programme. The report added that Prime Minister Shehbaz Sharif discussed signing a new standby arrangement (SBA) worth $2.6 billion for six months with IMF Managing Director Kristalina Georgieva. 'Pak taking decisive steps to push through economic reforms' On Tuesday, the IMF said that Pakistan was taking decisive steps to push through a series of economic reforms. In a statement, IMF's Pakistan mission chief Nathan Porter said that the country's authorities were bringing in policies more in line with the economic reform programme supported by the lender. "The IMF team continues discussions with Pakistani authorities with the aim of quickly reaching an agreement on financial support,” the statement added. Porter said that the steps taken by the government include parliament’s approval of a budget that expands the tax base and allows for more social and development spending, and efforts to improve the functioning of the foreign exchange market. The IMF mission chief also cited the country’s tightening of monetary policy to reduce inflationary and balance of payment pressures that “affect particularly the more vulnerable.” In the FY 24 budget, the government had earmarked $2.5 billion in external receipts from the IMF. Pakistan needs upwards of $22 billion to service external debt, make interest payments, and finance its current account for FY24. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Pakistan, IMF discussing $2.5 billion standby arrangement, says FM Ishaq Dar

Pakistan's Foreign Minister Bilawal Bhutto on Saturday (June 17) threatened to oppose the federal budget if the promised funds for flood-hit areas of Sindh were not released.

Pakistan's Foreign Minister Bilawal Bhutto on Saturday (June 17) threatened to oppose the federal budget if the promised funds for flood-hit areas of Sindh were not released. Addressing a gathering in Khwazakhela, Bhutto, the chairperson of the Pakistan Peoples Party (PPP), said that he did not have any doubt in the sincerity of Prime Minister Shehbaz Sharif but some people in the cabinet were reluctant to release the required funds for flood-hit people, The News reported. "We will not support the budget if our grievances are not addressed,” Bhutto added. The Foreign Minister also said that if the Muslim League wanted the PPP to vote for this budget, then it was not possible without allocating funds for flood reconstruction. PPP sends high-level committee to PM complaining about budget “We encourage our allies to prepare themselves and contest the elections, so that the next government finds solutions to problems faced by the people,” Bhutto said, adding the PPP sent a high-level committee to Prime Minister Sharif and his team, complaining that the budget contained little of PPP’s input. “We have approached our allies to make them understand that it is imperative that we look after the flood victims in our budget. We have no doubts over the intentions of the PM, as he witnessed the destruction with his own eyes, Bhutto said. "However, we would like to ask the PM to take up the matter with his team and hold those hindering this process accountable. We hope that the finance minister Ishaq Dar and his team will address our concerns and work towards resolving them,” the foreign minister added. Pak unveils budget amid ongoing economic crisis On June 9, Pakistan's Finance Minister Ishaq Dar unveiled a $51 billion budget for 2023-24 amid the ongoing economic crisis. "There are general elections in the country soon, but despite that the next fiscal-year budget is prepared as a responsible budget instead of an election budget," Finance Minister Dar said while presenting the budget to the National Assembly. Dar added the budget was based on the GDP growth of 3.5 per cent, although the World Bank projected a less-ambitious two per cent growth in a report issued earlier this week. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Pakistan: Bilawal Bhutto threatens to oppose federal budget. Here's why

Amid the ongoing economic crisis, Pakistan's Finance Minister Ishaq Dar unveiled the annual budget for 2023-24 on Friday (June 9) on the floor of the National Assembly. It was a 14.5 trillion rupee (around $50.5 billion) budget, with over half set aside to service 7.3 trillion rupees of debt. This is being deemed as the last budget of the government before the general elections later this year.&nbsp;

One of the key takeaways from the budget speech was when the minister said that the government was not imposing new taxes for the upcoming year.&nbsp;

As quoted by local media outlets, Dar said that the budget is "not an election budget" and is focusing on the "elements of the real economy". He further added that for the next year, GDP growth had been budgeted at 3.5 per cent, terming it a "modest target".&nbsp;

The government has set aside about 950 billion rupees for vote-winning development projects ahead of a general election later this year. Other measures include civil service pay rises of up to 35 per cent and a 17.5 per cent increase for state pensions.&nbsp;

Also read:&nbsp;<a href="https://www.wionews.com/south-asia/more-than-100-leaders-who-defected-imran-khans-pti-form-new-party-allegedly-backed-by-military-602503">More than 100 leaders, who quit Imran Khan’s PTI, form new party allegedly backed by military</a>&nbsp;

The economy of the nation has been stricken by a balance-of-payments crisis as it attempts to service crippling external debt. Months of political chaos have worsened the situation.&nbsp;

The cost of living crisis is also troubling the common people as inflation has rocketed, the rupee has plummeted and the country can no longer afford imports. This has led to a severe decline in industrial output.&nbsp;

Watch this report:&nbsp;

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<h2>Pakistan defence budget&nbsp;</h2>

Pakistan also hiked defence spending by 15.5 per cent and allocated over Rs 1.8 trillion. Dar said that a sum of Rs 1,804 billion has been proposed for defence, which is higher than Rs 1.523 billion allocated last year. The defence expenditure is 15.5 per cent higher than last year, making up about 1.7 per cent of the GDP.&nbsp;

Also read:&nbsp;<a href="https://www.wionews.com/south-asia/pakistan-imran-khan-gets-bail-in-murder-case-says-lawyer-602350">Imran Khan gets bail from Islamabad high court in lawyer’s murder case</a>&nbsp;

The defence sector expenses are the second biggest component of the annual expenditure after the debt payments, which for the next year would be Rs 7,303 billion and is the biggest single expense of the country. The minister declared a 3.5 per cent GDP growth target for the next year, which is a moderate target.&nbsp;

The minister said that the inflation target for the next fiscal year would be 21 per cent while the budget deficit would be 6.54 per cent of the GDP. He said that the export target would be Rs 30 billion and the target of remittances would be Rs 33 billion.&nbsp;

(With inputs from agencies)&nbsp; 
 
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Amid the ongoing economic crisis, Pakistan's Finance Minister Ishaq Dar unveiled the annual budget for 2023-24 on Friday (June 9) on the floor of the National Assembly.

Amid the ongoing economic crisis, Pakistan's Finance Minister Ishaq Dar unveiled the annual budget for 2023-24 on Friday (June 9) on the floor of the National Assembly. It was a 14.5 trillion rupee (around $50.5 billion) budget, with over half set aside to service 7.3 trillion rupees of debt. This is being deemed as the last budget of the government before the general elections later this year. One of the key takeaways from the budget speech was when the minister said that the government was not imposing new taxes for the upcoming year. As quoted by local media outlets, Dar said that the budget is "not an election budget" and is focusing on the "elements of the real economy". He further added that for the next year, GDP growth had been budgeted at 3.5 per cent, terming it a "modest target". The government has set aside about 950 billion rupees for vote-winning development projects ahead of a general election later this year. Other measures include civil service pay rises of up to 35 per cent and a 17.5 per cent increase for state pensions. Also read: More than 100 leaders, who quit Imran Khan’s PTI, form new party allegedly backed by military The economy of the nation has been stricken by a balance-of-payments crisis as it attempts to service crippling external debt. Months of political chaos have worsened the situation. The cost of living crisis is also troubling the common people as inflation has rocketed, the rupee has plummeted and the country can no longer afford imports. This has led to a severe decline in industrial output. Watch this report: × Pakistan defence budget Pakistan also hiked defence spending by 15.5 per cent and allocated over Rs 1.8 trillion. Dar said that a sum of Rs 1,804 billion has been proposed for defence, which is higher than Rs 1.523 billion allocated last year. The defence expenditure is 15.5 per cent higher than last year, making up about 1.7 per cent of the GDP. Also read: Imran Khan gets bail from Islamabad high court in lawyer’s murder case The defence sector expenses are the second biggest component of the annual expenditure after the debt payments, which for the next year would be Rs 7,303 billion and is the biggest single expense of the country. The minister declared a 3.5 per cent GDP growth target for the next year, which is a moderate target. The minister said that the inflation target for the next fiscal year would be 21 per cent while the budget deficit would be 6.54 per cent of the GDP. He said that the export target would be Rs 30 billion and the target of remittances would be Rs 33 billion. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Pakistan unveils $51 billion budget with focus on ‘elements of real economy’, hikes defence spending